Age appropriate allowance teaches children responsibility

Mary Biggs | Centers for Children and Families

Published 5:35 am, Sunday, July 13, 2014

Have you noticed that your child will spend a large amount of money as long as it is your money? It is important to teach children at an early age about the value of money and the need to save. Such lessons start a lifetime of disciplined money management.

As a parent, you have the opportunity to develop a learning environment suitable to your child’s age that introduces the value of money. As soon as your child begins to express an interest in material things — such as when he or she says “I want that,” typically around the age of 3 — it is time to introduce coins and their value. Children as young as preschoolers can begin saving coins.

Teaching financial responsibility can begin with setting an allowance for your child. As a parent, you will have to choose whether you want the allowance tied to chores or good grades or if it is something your child receives for being a part of the family. Once you have set the guidelines and explained them to your child, don’t allow he or her to nickel and dime you when their allowance is gone.

It is good to have your child be responsible for purchasing some things on their own. If parents buy everything for kids, they don’t learn to associate money with those items. The next thing children need to learn is how to budget their allowance. A percentage should go to savings and maybe some to church/Sunday school. Some should be allotted for expenses that you want your child to pay for.

One of the first questions parents ask is, “How much allowance should I give my child?” Some parents give a weekly allowance that is $1 for each year of age of the child. But instead of following what other parents give, make the decision of allowance based on what you expect your child to do with his or her allowance. Decide how the allowance is to be used. The allowance has to be high enough to cover these expenses, then if your child over spends in one area, he or she learns they won’t have enough money to last until the next allowance.

Linking the allowance to completion of chores is not always the best approach. Children need to learn the value of cooperation and to experience what it is to have the responsibility to contribute to the family.

Some money learning objectives to consider for allowances:

Preschool: Start talking about money and identifying coins and their values. Children can start saving for small items.

Elementary: Introduce an allowance. Help your child sort money into categories of savings, expenses and entertainment.

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Teenagers: Help develop more financial responsibility and more financial independence. Help assess job opportunities for major purchases. Start a savings or bank account.

Mary Biggs is a registered play therapist who has been with Centers for Children and Families since 2006.